Big iron ore is getting pounded today as the broader markets weakens and the reality of Chinese steel weakness keep the pressure on. The technicals are looking a little scary for the big boys. RIO is off over 2% and is approaching key technical support levels
That’s a rather ugly looking series of bearish descending triangles. The next two support levels are the lows at $53.69 and $52.69. On the longer term chart, terminal support is just under $50:
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And yes, I do expect RIO to reach $20 some time in the next year or two. Better buy it for the dividend. Pfft.